How can innovative technological solutions help finance departments while battling against fraud?

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In a context where almost 80% of companies declare having encountered at least one attempted fraud and where this growing phenomenon makes an impact on all entities, regardless of their sector of activity, location or turnover, using innovative technological solutions is of precious help for CFOs (administrative and financial)

Innovative technologies in support with in-house anti-fraud systems

Affecting all businesses, including those specializing in security or sensitive industries, fraud can take place with anyone. Therefore, all the actors have gradually mobilized to raise awareness among threatened entities: the State, through specialized sites which are made available to companies, banks, by strengthening their vigilance and their alert systems. the place of these same actors. But it is in-house that the anti-fraud systems have been improved the most, mainly through awareness-raising or even increased training for all staff who are directly or indirectly concerned by these risks. Along with these actions, the implementation of technological solutions which are capable of supporting the financial departments has become increasingly urgent. Therefore, the use of scalable systems which are capable of quickly adapting to various anti-fraud issues, starting with the management of Big Data [1], is now essential.  

« machine learning » to the rescue of risk analysis

Moreover, in addition to tools which are adapted to the processing of big data, Machine Learning has complemented the solutions which allows to move from data processing (input) to its analysis or even to recommendations (output) based on the development scalable algorithms. Within the framework of the battle against fraud, these predictive capacities allow exploiting the financial behavior of the partners of the company, mainly in terms of payment frequency of a supplier, of number of users for a type of payment which is specific or even frequency of use of the same IBAN [2] (bank details). Moreover, for a definite fraud detection potential, these technologies also allow finance departments to refine their risk management, for example by assigning an IBAN score according to various criteria, which are specific to the company itself. Beyond enhancing security, these tools help create new opportunities and even make room for areas of action, that would not have been possible with traditional IT tools.

Traditional IT

The enhanced expertise of a human-multichannel technology combination

However, this fight against fraud cannot remain effective without, in addition to the mobilization of all the actors, the intervention of experts who have a sound expertise on both risk management and the technological tools which are used. While registering a new customer or service provider, for example, or when a new IBAN appears for a former service provider, it is essential to continue to carry out a “manual” investigation to prevent any risk of fraud.

The same applied, during the development of dematerialized tools (in the “cloud”), in terms of factoring for example, where the transmitted IBAN to the financial department does not belong to the supplier but to its financial service provider, requires a cross analysis of channels. Last but not least, through the help of these innovative tools, audit teams can also, besides for better reliability, gather information with higher added value.

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[1] Also known as “big data”, which designates a set of data which is so large that it goes way beyond human intuition and capacities analysis as well as computer tools for database or conventional information management. Source: Wikipedia

[2] International Bank Account Number


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